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Information Technology Archives | Page 12 of 18 | Smartkarma

Mar 21
0

TMT: Tobila Systems Inc, GoTo, Samsung SDI, GitLab, BigCommerce Holdings and more

By | Daily Briefs, TMT/Internet

In today’s briefing:

  • Tobila Systems: The Monopoly that You Probably Never Heard Of (Even as Its Customer)
  • GoTo IPO: A No Go
  • KOSPI 200 IT (TIGER ETF) Rebalancing Preview
  • Gitlab 4Q22 Earnings: Impressive
  • GoTo IPO: Peer Comparison and Valuation
  • BigCommerce: Stock Selloff Looks Finished As Valuation Hit $1.5 Billion

Tobila Systems: The Monopoly that You Probably Never Heard Of (Even as Its Customer)

By Steven Chen

  • With less than 60 employees, Tobila Systems is the absolute dominator in the space that can make a significant impact on Japan’s society;
  • The valuation starts to look attractive while the fundamentals remain sound;
  • Partly benefiting from being the first entrant to this niche with a robust flywheel business model, the company now “monopolizes” both the supply side and the distribution side.

GoTo IPO: A No Go

By Shifara Samsudeen, ACMA, CGMA

  • Superapp GoTo has filed for an IPO to list its shares on the Indonesian Stock Exchange to raise US$1.2bn at a market capitalisation of US$25.0bn.
  • The company plans to use most of the proceeds on developing its businesses including Gojek, Tokopedia and fintech services.
  • Our analysis on the company’s financials suggests the company has been burning cash to grow its business and may not be able to generate any profits in the near future.

KOSPI 200 IT (TIGER ETF) Rebalancing Preview

By Sanghyun Park

  • KOSPI 200 IT sector index rebalances twice a year in June and December. The effective date for the upcoming rebalancing is June 10.
  • The IT sector has a high degree of price cointegration of the stocks within the sector. Therefore, the impact/price correlation is robust despite a smaller impact size.
  • At this point, the following three stocks deserve our attention: Samsung SDI, Kakao Pay, and LG Corp. We can expect a passive inflow of +0.15x for these highly liquid names.

Gitlab 4Q22 Earnings: Impressive

By Aaron Gabin

  • Revenue grew 69% YoY to $78M vs. consensus at $70M (+52%), with very impressive underlying growth metrics that show the larger customers are the fastest growing.
  • Increased selling through hyperscaler partners may aid S&M leverage over time. 
  • Acquisition of Opstrace accelerates the platform expansion into observability, but right now positioned vs. nonconsumption rather than against Datadog.

GoTo IPO: Peer Comparison and Valuation

By Shifara Samsudeen, ACMA, CGMA

  • Superapp GoTo (1379371D IJ) has filed for an IPO to list its shares on the Indonesian Stock Exchange to raise US$1.1-1.25bn at a valuation of about US$24-26bn.
  • The company plans to use the proceeds to develop its business including for customer acquisition, product development and sales and marketing.
  • Our SOTP valuation implies that GoTo’s shares are overvalued at the indicative IPO price range.

BigCommerce: Stock Selloff Looks Finished As Valuation Hit $1.5 Billion

By Andrei Zakharov

  • Shares of BigCommerce Holdings (BIGC US)  slipped below the IPO price of $24.00 per share, and at current valuation, we see limited downside risk for BigCommerce stock investors.  
  • In 2020, Intuit Inc (INTU US)  offered to acquire BigCommerce for $1.5 billion, according to CNBC and other public sources. Both BigCommerce and Intuit didn’t provide a comment.
  • Insider selling activity has slowed down noticeably over the past three months and BigCommerce Holdings (BIGC US)  insiders sold ~$5 million worth of shares. 

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Mar 20
0

TMT: Alphabet Inc Cl C, GoTo, Meituan, Tencent, Apple Inc and more

By | Daily Briefs, TMT/Internet

In today’s briefing:

  • Vulcan Value Partners Q4 And Annual 2021 Letter
  • GoTo Gojek Tokopedia IPO: Valuation Insights
  • Meituan (3690 HK) 182 Rejection Level and Draw Down Buy Support
  • ECM Weekly (20th Mar 2022) – JD.com, Tencent, Prosus, GoTo, Ferretti, Green Tea, Recbio, Abacus
  • GreenWood Investors Fourth Quarter 2021 Letter

Vulcan Value Partners Q4 And Annual 2021 Letter

By Fund Newsletters

  • We are value investors – business analysts with a long-term time horizon focused on purchasing publicly traded companies that are competitively entrenched at significant discounts to intrinsic worth.
  • After very strong absolute and relative returns through the first nine months of the year, all of our investment strategies lagged their benchmarks during the fourth quarter.
  • All of our portfolios are fully invested in world class businesses with stable values trading at a significant discount to intrinsic worth.

GoTo Gojek Tokopedia IPO: Valuation Insights

By Arun George

  • GoTo (1379371D IJ) is the leading digital ecosystem in Southeast Asia. It seeking to raise up to $1.3 billion. Bookbuilding ends on 21 March.
  • In GoTo Gojek Tokopedia IPO Initiation: Island Shopping, we noted that the fundamentals are mixed as the high growth is accompanied by ongoing losses and cash burn. 
  • Our valuation analysis suggests that the price range is aggressive and unattractive. We would give the IPO a pass. 

Meituan (3690 HK) 182 Rejection Level and Draw Down Buy Support

By Thomas Schroeder

  • Meituan met the 104 macro buy support and short covering spike. 180 resistance to cap for a give back to let the dust settle and set up a fresh long.
  • 180-182 resistance is where old price lows and the 38.2% retracement coincide and expected to induce a reaction lower. 
  • 200 and 222 intermediate barriers are in focus. Buy support below 142 lies near 120 on a steep give back sequence.

ECM Weekly (20th Mar 2022) – JD.com, Tencent, Prosus, GoTo, Ferretti, Green Tea, Recbio, Abacus

By Sumeet Singh

  • Aequitas Research puts out a weekly update on the deals that were covered by the team recently along with updates for upcoming IPOs.
  • GoTo (1379371D IJ) launched its bookbuild but decided to keep it local, with no international bookrunners.
  • Placements continue to trickle in with Abacus Property (ABP AU) managing to raise US$150m odd. All eyes will be on JD.com Inc. (9618 HK) in the coming week.

GreenWood Investors Fourth Quarter 2021 Letter

By Fund Newsletters

  • GreenWood Investors is a mostly-long, deep value investment firm focused on areas of extreme pessimism, structural inefficiencies and low competition.
  • Our fourth quarter performance reflected a worldwide capitulation away from nearly everything except the large tech companies.
  • We want to be optimized for both the short, medium and long-term, and seek rare investments that look attractive from all perspectives.
  • We’ve given significant consideration to owning the big tech monopolies since 2012.
  • We’ve been finding highly compelling short opportunities in addition to maintaining a high sense of urgency in sifting through the wreckage brought on by the most recent market turmoil.

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Mar 19
0

TMT: Sea Ltd, Wiwynn Corp and more

By | Daily Briefs, TMT/Internet

In today’s briefing:

  • Sea Ltd.’s Money Machine Is Broken, Downside Is Not Fully Priced-In
  • Wiwynn Corp Placement – Selldown’s Timing Is Curious but Previous Deal Had Performed Well

Sea Ltd.’s Money Machine Is Broken, Downside Is Not Fully Priced-In

By Oshadhi Kumarasiri

  • Perhaps, misled by the Chinese tech rally due to the change in stance from the Chinese Government, Sea’s shares rose by 33% compared to the broader market’s 8.3%.
  • With fundamentals deteriorating and the Federal Reserve signalling an aggressive rate hike outlook, Sea Ltd (SE US)’s 33% move seems unwarranted.
  • Meanwhile, the downside potential is quite significant as Sea trades at a significant FY+2 EV/Sales premium to regional peers whose cyclical bottoms are unknown.

Wiwynn Corp Placement – Selldown’s Timing Is Curious but Previous Deal Had Performed Well

By Clarence Chu

  • Wistron Corp (3231 TT) aims to raise around US$204m (NT$5.8bn) via selling 3.3% of its stake in subsidiary, Wiwynn Corp (6669 TT) . This would not be a clean-up.
  • The timing is curious given Wiwynn having just announced its plans to offer up to 17m new shares in a primary follow-on offer. 
  • In this note, we will talk about the firm’s track record and run the deal through our ECM framework.

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Mar 18
0

TMT: Softbank Group, Razer Inc, GoTo, LINE Corp, Meituan, HashiCorp, Intuit Inc and more

By | Daily Briefs, TMT/Internet

In today’s briefing:

  • Softbank Group – China Bounce Erases a Week of Losses
  • Razer’s Offer Spread Risk/Reward – FY21 Results
  • GoTo IPO – Valuation – Missed the Tide, Boat Won’t Rise
  • LINE Gift: The Next Stage
  • Meituan (3690 HK): Authorities Turned Friendly to Internet Companies, Upgrade to Buy
  • Will Cisco Make A Bid For HashiCorp As Valuation Fell By Half From The IPO Price?
  • Intuit: A Strategy Shift And High Momentum Exposure

Softbank Group – China Bounce Erases a Week of Losses

By Kirk Boodry

  • Softbank is a $23bn winner on the China bounce as Alibaba (+37% over 2 days, $18bn) and Vision Fund (+$4.8bn) recovered from selling pressure over the last week
  • Improving sentiment aside the discount remains above 50% and the rebound appears to be more about correcting excess selling than a change in market outlook
  • We remain wary of Chinese exposure in the near-term on political, regulatory and economic risks although the worst appears to be over for now

Razer’s Offer Spread Risk/Reward – FY21 Results

By Arun George

  • Razer Inc (1337 HK)‘s FY21 results beat consensus revenue by 8% but came below consensus EBIT by 3%, based on CapitalIQ data.
  • The management did their best to dampen sentiment by pointing out slowing growth momentum and margin compression due to significant growth investments in 2022.  
  • We think that the results/outlook do little to increase the attractiveness of the offer. We would be buyers up to HK$2.5 per share (implies 65% deal probability).

GoTo IPO – Valuation – Missed the Tide, Boat Won’t Rise

By Sumeet Singh

  • GoTo aims to raise around US$1.25bn from a local listing, which will mainly be targeted at domestic investors. 
  • GoTo, is an Indonesian holding company, was formed in May 2021 as a result of a merger between Gojek, leading player in ride hailing, and Tokopedia, leading e-commerce player.
  • In this note, we will talk about the company’s valuation.

LINE Gift: The Next Stage

By Michael Causton

  • LINE Gift has doubled its user base to 20 million in a year, and added merchants like Seven Eleven, but isn’t content with this. 
  • It has only just integrated with Zozo and Yahoo Shopping and expects these new partners, as well as new TV ad campaigns, to deliver a major increase in user numbers.
  • The collaboration with Z Holdings’ through Yahoo Shopping and Zozo shows the potential for leveraging the groups’ huge user base.

Meituan (3690 HK): Authorities Turned Friendly to Internet Companies, Upgrade to Buy

By Ming Lu

  • Central Financial Working Committee turned friendly to overseas listed internet Companies.
  • We believe Meituan will be free from the pressure of anti-monopoly rules.
  • Meituan stock has fallen significantly and we upgrade it to BUY.

Will Cisco Make A Bid For HashiCorp As Valuation Fell By Half From The IPO Price?

By Andrei Zakharov

  • Shares of HashiCorp (HCP US) , a leading VC-backed infrastructure automation company, fell ~50% below the IPO price of $80.00 per share.
  • HashiCorp (HCP US)  is a multi-product company that helps to accelerate cloud adoption. The company reported total revenue of $321M in FY’22 ended Jan-22, up 51% year-over-year. 
  • According to public sources, Cisco Systems (CSCO US)  has already approached HashiCorp with an acquisition offer in 2019. However, both Cisco and HashiCorp declined to comment on rumors.

Intuit: A Strategy Shift And High Momentum Exposure

By Vladimir Dimitrov, CFA

  • Intuit returned a negative 27% since I warned for pending risks for the share price back in November of last year.
  • While most of that disappointing performance was due to market related risks, the company’s strategy seems to be changing rapidly.
  • Shifting the focus from a pure organic-led growth to an M&A frenzy is a bad omen in the already richly priced software space.

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Mar 17
0

TMT: Tencent, SK Square, GoTo, Nintendo Co Ltd, Hollysys Automation Technologies, Technology Select Sector SPDR and more

By | Daily Briefs, TMT/Internet

In today’s briefing:

  • Hong Kong: Where Have Shorts Increased & Decreased?
  • Korea Holding Companies: Stub Tradable Names
  • Tencent (700 HK): Layoff and Penalty Before 4Q21 Result
  • GoTo IPO – Past Performance Hasn’t All Been Great
  • Nintendo – Switch Pro Leaks And Implications For Developers
  • Hollysys (HOLI US): Potential Suitors Didn’t Get The Memo
  • GoTo Gojek Tokopedia IPO: Offering Details & Index Inclusion
  • Tencent Met Our 320 Macro Long Entry Target
  • Downgrading Technology To Underweight
  • GoTo Gojek Tokopedia IPO Initiation: Island Shopping

Hong Kong: Where Have Shorts Increased & Decreased?

By Brian Freitas

  • Short notional in Hong Kong is HK$488bn and has been falling mainly as a result of a falling market. Short interest has increased substantially from end January.
  • From 31 January to 4 March, the largest shorts have been built on Tencent, China Merchants Bank, AIA Group Ltd, Alibaba, JD.com, Meituan, Xiaomi, JD Health and Xinyi Solar.
  • Over the same period, shorts have covered on COSCO Shipping Holdings, HKEX, Longfor Properties, China Construction Bank, Ping An Insurance, Yanzhou Coal Mining Company and HSBC Holdings.

Korea Holding Companies: Stub Tradable Names

By Sanghyun Park

  • Korea has a total of 68 holding companies listed on KOSPI and KOSDAQ. We then have 14 holdcos with a high level of price cointegration with their respective listed subsidiaries.
  • Three holding companies have sigma below zero on a 20D MA. Hanwha Corp is considered stub tradable as its share price relative to its subsidiaries was relatively flat.
  • Four holdcos, including SK Square are over 70% NAV discount. Among them, SK Square is of the most interest as the price correlation with SK Hynix has been improving lately.

Tencent (700 HK): Layoff and Penalty Before 4Q21 Result

By Ming Lu

  • Layoff rumors are spreading, which shadow two departments and 10% of Tencent’s employees.
  • China Banking Regulatory Commission (CBRC) will fine Tencent for money laundering.
  • Short video apps are taking time on site from Tencent’s WeChat app.

GoTo IPO – Past Performance Hasn’t All Been Great

By Sumeet Singh

  • GoTo aims to raise around US$1.25bn from a local listing, which will mainly be targeted at domestic investors. 
  • GoTo, is an Indonesian holding company, was formed in May 2021 as a result of a merger between Gojek, leading player in ride hailing, and Tokopedia, leading e-commerce player.
  • In this note, we talk about the company’s past performance.

Nintendo – Switch Pro Leaks And Implications For Developers

By Mio Kato

  • Recent hacks into Nvidia have resulted in leaks that have got the rumour mills churning again for an upgrade to the Switch. 
  • Most details are similar to previous reporting by Bloomberg for the Switch Pro that was expected last year but failed to materialise. 
  • However, the recent leaks point to a bigger GPU upgrade that previously envisioned and that has implications…

Hollysys (HOLI US): Potential Suitors Didn’t Get The Memo

By David Blennerhassett

  • Hollysys Automation (HOLI US) said in January it would suspend further evaluation of all unsolicited buyout proposals. Two proposals have reportedly since emerged.
  • According to Bloomberg, the latest tilt is from Beijing Infrastructure, the state-owned operator of Beijing’s railway and subway.
  • Separately, Hollysys reported FY21 net income of US$44.3mn, a decrease of 14.6% to FY20.

GoTo Gojek Tokopedia IPO: Offering Details & Index Inclusion

By Brian Freitas

  • GoTo (1379371D IJ) is offering 52bn shares in its IPO (plus a greenshoe of 7.8bn shares). The issue is being targeted at domestic investors and should list on 4 April.
  • GoTo (1379371D IJ) will also look to list on an international exchange within the next two years by selling just over 8% of the company to those investors.
  • Inclusion in domestic indices could take place in July, while inclusion in the MSCI and FTSE indices is expected in 2023 at the earliest.

Tencent Met Our 320 Macro Long Entry Target

By Thomas Schroeder

  • Our bear call on Tencent met the reverse target at 320 at macro support to go long with some choppy trade expected in coming weeks. Volume spikes to induce volatility.
  • Hong Kong tech index also met the 3,500 rally support. 4,500 represents immediate resistance that will induce a rejection and pullback. Magnitude of this rise will need a give back.
  • Tencent 390/400 is near resistance to sell (tactical short) and sets up the bigger buy in the lower range quadrant. 400 is the level to clear for bull traction.

Downgrading Technology To Underweight

By Joe Jasper

  • Our outlook remains bearish at the index level considering we have yet to see any developments that suggest a bottom is in. 
  • The S&P 500, Nasdaq 100 (QQQ), Russell 2000 (IWM), and Russell Micro Cap (IWC) indexes remain in downtrends.
  • In today’s report we highlight attractive Groups and stocks within Materials, Manufacturing,  Services, and Utilities: MA-14 Fertilizer, MF-15 Railroad Equipment & Products, SV-13 Construction & Engineering, Large-Cap, UT-04 Electric, Mid-Atlantic

GoTo Gojek Tokopedia IPO Initiation: Island Shopping

By Arun George

  • GoTo (1379371D IJ) is the leading digital ecosystem in Southeast Asia. It seeking to raise up to $1.3 billion. Bookbuilding runs from 15 to 21 March. 
  • The fundamentals are mixed as the high growth is accompanied by ongoing losses and cash burn. A credible path to profitability is yet to be established.    
  • In an environment where growth-at-all costs tech firms and peers have materially sold-off and are out of favour, GoTo is not for the faint-hearted.   

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Mar 16
0

TMT: Tencent, GoTo, Globalwafers, IndiaMart and more

By | Daily Briefs, TMT/Internet

In today’s briefing:

  • Tencent: Possible Record Fine for Anti-Money Laundering
  • GoTo Pre-IPO – Quick Take on US$1bn+ Domestic Listing
  • GlobalWafers (6488.TT): Under Current Ukraine Crisis, We Have to Admit the Volatility Is Very High.
  • Initiating Coverage:Indiamart Inter.

Tencent: Possible Record Fine for Anti-Money Laundering

By Shifara Samsudeen, ACMA, CGMA

  • Wall Street Journal (WSJ) reported yesterday that Tencent (700 HK) is facing a possible record fine for violating anti-money laundering regulations in China.
  • People’s Bank of China has found that WeChat Pay had allowed transfer and laundering of funds with illicit transactions which violates the country’s anti-money laundering regulations.
  • Tencent’s shares dropped further 10.3% to HK$331 per share from HK$369 per share during yesterday’s trade following the above report.

GoTo Pre-IPO – Quick Take on US$1bn+ Domestic Listing

By Sumeet Singh

  • GoTo aims to raise around US$1.25bn from a local listing, which will mainly be targeted at domestic investors. The company has filed its prospectus today.
  • GoTo, is an Indonesian holding company, was formed in May 2021 as a result of a merger between Gojek, leading player in ride hailing, and Tokopedia, leading e-commerce player.
  • In this note, we will take a quick look at the company’s financial performance.

GlobalWafers (6488.TT): Under Current Ukraine Crisis, We Have to Admit the Volatility Is Very High.

By Patrick Liao

  • Under current Ukraine crisis, we have to admit the volatility is very high. Not only the GlobalWafers, but the other semiconductor names are stumbled as well.
  • Although 4Q21 revenue is NT$15.8bn, the highest record in GlobalWafers’ history, but the termination fee on Siltronic deal was €15mn, which was consuming NT$3.5 for GlobalWafers’ net EPS.
  • GlobalWafers keeps NT$100bn, ~US$3.6bn, for the expansion in next couple of years, which covers investments across Asia, Europe and the United States spanning both brownfield and greenfield projects.

Initiating Coverage:Indiamart Inter.

By Axis Direct

  • We assign 45x to the company’s FY24E earnings of Rs 150 to arrive at the target price of Rs 6,800/share, implying an upside of 52% from the CMP.
  • .
Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

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Mar 15
0

TMT: Palantir Technologies Inc, LG Energy Solution, Coupang, Hong Kong Hang Seng Index, Amazon.com Inc, Paytm and more

By | Daily Briefs, TMT/Internet

In today’s briefing:

  • Palantir – Little Early But Getting Interesting Again
  • Korean Financial Authorities Tighten IPO Requirements for Institutional Investors
  • Softbank Sells $1.0 Billion Additional Worth of Coupang: Continued Overhang Concerns
  • HSI 18,100 a Big Level
  • To Buy or not to Buy: Stock Splits?
  • RBI directs PPBL to temporarily stop onboarding new customers

Palantir – Little Early But Getting Interesting Again

By Mio Kato

  • We last wrote on Palantir over a year ago when we suggested stepping away given expiring lock-ups. 
  • The stock is down 58% since that call as it has sold off together with other unprofitable, high-growth names. 
  • However, we remain of the view that there is something to Palantir unlike many of its compatriots and Ark is now out…

Korean Financial Authorities Tighten IPO Requirements for Institutional Investors

By Douglas Kim

  • On 11 March, Korea Financial Investment Association (KFIA) announced that it will tighten IPO requirements for institutional investors.
  • This is likely to further dampen the local IPO market in Korea which has been in the doldrums after the biggest-ever IPO in Korea LG Energy Solution two month ago.
  • As a result of the change in the IPO requirements for institutional investors, this is likely to to negatively impact smaller investment funds without adequate amount of AUM.

Softbank Sells $1.0 Billion Additional Worth of Coupang: Continued Overhang Concerns

By Douglas Kim

  • On 14 March, it was reported that Softbank’s Vision Fund sold about 1.3 trillion won ($1.04 billion) worth of Coupang (CPNG US) shares on 9 March in a block deal.
  • The continued selling of Coupang shares by Softbank suggests that Softbank is not confident on the future prospects of the company. We remain negative on Coupang.
  • Another reason could be because Softbank needs to raise more cash to make up for the losses from its other investments (mainly Chinese tech companies). 

HSI 18,100 a Big Level

By Thomas Schroeder

  • HSI sliced below the 19,600 projection with the next level at 18,450 and the big dual lows from 2012 and 2016 at 18,100 and a big level to hold.
  • Sell volumes and sell momentum remain high, equating to more short term pain.
  • HK tech index break below 4,000 support set to test key lows from 2018 and 2019 as the levels to hold to avert new chart lows.

To Buy or not to Buy: Stock Splits?

By Market Sentiment

  • Stock splits are all the rage – After Google announced in Feb that there would be a 20:1 stock split in July this year
  • Amazon has followed suit announcing a similar 20:1 split and sending the market into a frenzy
  • Amazon’s price was up by 6% the next day and Google’s stock rose more than 9% in after-market trading following the news

RBI directs PPBL to temporarily stop onboarding new customers

By ICICI Securities Limited

  • RBI has directed Paytm Payments Bank (PPBL), an associate of One 97 Communications (OCL or Paytm), to temporarily halt onboarding of new customers, via a letter dated 11th Mar’22. The embargo will have an adverse impact on signing up users for new PPBL wallets or savings / current accounts, until further notice.
  • .
Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

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Mar 14
0

TMT: KraneShares CSI China Internet ETF, Taiwan Semiconductor Sp Adr, Samsung SDI, Razer Inc, Advanced Micro Devices and more

By | Daily Briefs, TMT/Internet

In today’s briefing:

  • China ADRs & HFCAA: Pace of Homecoming Listings Should Pick Up & Implications
  • TSMC (TSM.US; 2303.TT): ASP Lifting Hasn’t Decided Yet; QCOM Moves Back High-End Smartphone 8 Gen 1
  • KODEX (FnGuide) Battery ETF Rebalancing: Passive Flow Tracking for Two Remaining Days
  • Merger Arb Mondays – Razer, 51Job, Irongate, Link, Crown Resorts, Guodian
  • Charts to Watch

China ADRs & HFCAA: Pace of Homecoming Listings Should Pick Up & Implications

By Brian Freitas

  • China ADRs were sharply lower last week as the SEC started to name companies that were identified under the Holding Foreign Companies Accountable Act (HFCAA).
  • Then DiDi Global dropped 44% on Friday following reports that the their proposals to prevent data/security leaks did not meet CAC’s requirements and work on the HK listing was halted.
  • With 2024 not too far away, a lot of the U.S. listed companies will look at listing in Hong Kong in the near future. That will have its own implications.

TSMC (TSM.US; 2303.TT): ASP Lifting Hasn’t Decided Yet; QCOM Moves Back High-End Smartphone 8 Gen 1

By Patrick Liao

  • We think TSMC is still considering 1) at what time and 2) what technologies to further raise wafer price now.
  • TSMC’s largest client is Apple. Qualcomm should be the 2nd client because they will ship Snapdragon 8 Gen 1 from TSMC in 4Q22. Nvidia/MediaTek are the 3rd/4th clients. 
  • TSMC is giving nearly 49% stock ownership to Sony for CMOS Image Sensor (CIS) Fab in Japan. It is mainly to obtain the CIS technology, to our thoughts. 

KODEX (FnGuide) Battery ETF Rebalancing: Passive Flow Tracking for Two Remaining Days

By Sanghyun Park

  • KODEX battery ETF does rebalancing four times a year from this March. The rebalancing trading is done for 3-trading days from March 14 to 16, presumably equal daily weight.
  • Due to the low float rate, LG Energy will fall to third place. Samsung SDI should become the top constituent with a 20% cap, followed by SK Innovation at 15%.
  • The passive impact sizes of the top four stocks are significant, considering they are in the same sector. So, they should make themselves a suitable target for long/short basket trading.

Merger Arb Mondays – Razer, 51Job, Irongate, Link, Crown Resorts, Guodian

By Arun George

Charts to Watch

By Market Radar

  • The Chinese Government has not been very friendly with the Chinese tech companies in the last year: it imposed several fines and introduced new anti-monopoly laws, that hurt company business and profitability
  • Now the SEC is trying to look better into the balance sheet of these companies, threatening a possible delisting from U.S. exchanges. This is another big risk for chinese tech stocks.
  • An almost 70% drawdown already happened. Will there ever be a reversal?

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Mar 13
0

TMT: Silergy Corp, Tencent and more

By | Daily Briefs, TMT/Internet

In today’s briefing:

  • Silergy (6415.TT): Earnings Conference for 4Q21- The Demand Is Strong for 2022~23.
  • ECM Weekly (13th Mar 2022)-Arrail, Aquila, Propguru, Ferretti, Jinmao, Nio, Fabindia, Hyu Hvy, Cosmo

Silergy (6415.TT): Earnings Conference for 4Q21- The Demand Is Strong for 2022~23.

By Patrick Liao

  • Silergy foresees the demand will be larger than capacity in 2022. Silergy expects Auto, Sever Mother-board, SSD and others should be showing a strong demand in 2022.
  • The shipment lead-time is controlled around 5~6 months, which indicated that the demand is strong for 2022~23.
  • The generation 3rd will be optimized until 2026. Silergy will need some new suppliers for generation 4th in 2023. In 2026, generation 3rd & 4th will dominate Silergy’s revenue. 

ECM Weekly (13th Mar 2022)-Arrail, Aquila, Propguru, Ferretti, Jinmao, Nio, Fabindia, Hyu Hvy, Cosmo

By Sumeet Singh

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Mar 12
0

TMT: Alibaba Group, Grab, Cialfo, Softbank Group and more

By | Daily Briefs, TMT/Internet

In today’s briefing:

  • China ADRs Delisting – SEC Sets the Clock Ticking and Sends China ADRs Tripping
  • Grab (GRAB US) – A Rough Ride for Now but Smoother Terrain Ahead
  • Tiger Global Leads $20m Series B Extension of Singapore Edtech Firm
  • Softbank Group – China Worries Re-Surface as Alibaba, Didi Under Pressure

China ADRs Delisting – SEC Sets the Clock Ticking and Sends China ADRs Tripping

By Sumeet Singh

  • On 8th Mar 2022, Securities Exchange Commission (SEC) added five China ADR names to its provisional list of issuers under the Holding Foreign Companies Accountable Act (HFCAA).
  • There is nothing new about the list, on 2nd Dec 2021, SEC had issued final amendments to implement the HFCAA which had already spoken about the list and its implications.
  • In this note, we’ll talk about the latest developments its possible timelines and implications.

Grab (GRAB US) – A Rough Ride for Now but Smoother Terrain Ahead

By Angus Mackintosh

  • The headlines for Grab‘s recent results looked encouraging but the higher driver and consumer incentives hit revenues and profitability towards the end of the year but this is temporary.
  • Grab (GRAB US) is facing stiffer competition in the region, especially from GoTo and Shopee Food but is defending its lead and preparing for higher growth in mobility requiring investment.
  • Increasing exposure in digital financial services plus more focus on verticals such as online groceries bodes well for future growth. A market cap of US$12.5bn with US$6.8bn in net cash.

Tiger Global Leads $20m Series B Extension of Singapore Edtech Firm

By Tech in Asia

  • Cialfo, a Singapore-based edtech startup, has raised another US$20 million in series B funding led by US-based investment firm Tiger Global after it raised US$40 million in January this year.
  • In total, the company has raised US$77 million in funding to date. VentureCap Insights pegged the firm’s valuation at around US$230 million.
  • Founded by Rohan Pasari, Stanley Chia, and William Hund in 2017, Cialfo is a software-as-a-service firm that simplifies the career exploration and college search process.

Softbank Group – China Worries Re-Surface as Alibaba, Didi Under Pressure

By Kirk Boodry

  • Both Alibaba (-6%) and Didi (-12% pre-market) are down on regulatory pressure 
  • Vision Fund valuation losses are approaching $20bn for Q4 and the current (unrealized) portfolio has turned negative
  • NAV/Share and the share price are at two-year lows and gains from the post-Covid tech run are largely gone

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